Pick of the Day: GBP/USD – No Trade

No Trade: 2007-03-09 14:00

Orders did not trigger ahead of the weekend. No Trade

Trade Idea: 2007-03-09 08:45

February US Non-Farm Payrolls came out with +97K new jobs added, 4.5% Unemployment rate – pretty much inline with forecasts. January’s number was revised up to 146K from 111K, and December’s number was revised up to +226K from 206K. The US Trade Balance also came out at -59.1B; also inline with forecasts.

We’re seeing volatility at the moment as traders digest the information. With upward revisions to previous numbers and a slightly better than expected US Trade Balance number, I’m more dollar long bias, so I’m looking for a short play on GBP/USD if the pair trades up to 1.9350.

Short GBP/USD at 1.9350, stop at 1.9380, pt at 1.9300

Remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.

Good luck and trading!

2007-03-08 20:20

Tomorrow the monsterous US Non-Farm Payrolls report will be released at 8:30 am EST. Because the market moves so fast after the report we recommend waiting for the market to calm down before entering orders to avoid slippage. Tomorrow’s report is forecasted to be an increase of 95K jobs – slightly lower than the previous number.

Market reaction is tough to predict, especially since the last couple of jobs reports traders reacted more to the previous month revisions more than the headline number. So, for tomorrow’s trade I will initially look to fade any strong moves and I will enter my orders in AFTER the report has been released. This all depends on the numbers and revisions. So stay tuned for a trade idea tomorrow morning. See ya then!

  • kath

    Hi Is this trade now closed? Its confusing because you don’t provide updates on all trades – I think this one was a 50 pip profit? Why wouldn’t this be in the Pip count? Kath

  • kath

    Hi Is this trade now closed? Its confusing because you don’t provide updates on all trades – I think this one was a 50 pip profit? Why wouldn’t this be in the Pip count? Kath